Traditional methods of conducting financial transactions commonly consist of an exchange of money using paper currency, checks, payment cards (e.g., credit cards, debit cards, etc.) and electronic transfers involving a financial institution. In more recent years, an increasing amount of financial transactions occur electronically and do not require actual presentation of payment cards. Some financial transactions may be processed over computer networks, such as the Internet, while other transactions may be processed using telephone-based systems or systems implemented in brick-and-mortar locations. Increasingly, a number of financial transactions are conducted by mobile telephones. However, these financial transactions often require specialized hardware, include limited user options, have time consuming processes, or are otherwise ill-suited for quick payments in a brick-and-mortar location.
In a typical transaction, information about each party is typically exchanged to facilitate the financial transaction. Some of this information may be personal or private information that a person may not desire to share with a merchant or a stranger. For example, a customer typically has to provide one or more of a payment account number, a username, a password, or other sensitive information during execution of an electronic payment. In addition, payment information stored or accessible on a mobile phone is susceptible to misuse when the mobile phone is lost or misplaced by a user.